A broad coalition of community organizations, transit riders, bus drivers, and legislators gathered in the Rhode Island State House for a press conference urging the legislature to commit to funding the agency. The Rhode Island Public Transit Agency (RIPTA) faces a $32.6 million operational deficit for FY 2026 that would force mass layoffs and service cuts.
Here’s the video:
The Save RIPTA coalition announced a package of seven bills that will fund RIPTA in both the short- and long-term, via various new revenue streams:
-
$32.6 Million Budget Allocation (Representative Alzate / Senator McKenney S0342) – Would close RIPTA’s FY26 operating deficit to prevent mass layoffs and service cuts through a general fund allocation.
-
Rideshare Sales Tax Reallocation (Representative Morales H5405 / Senator Britto) – Would allocate the current 7% sales tax collected on all Uber/Lyft rides to RIPTA’s operational budget.
-
Commuter Transportation Benefits Act (Deputy Speaker Hull H5304 / Senator Bissaillon) – Would require any company with 500 or more employees within ¾ of a mile of a bus stop to provide bus passes to employees who request them instead of parking privileges, to generate more revenue for RIPTA via its Wave to Work program.
-
Transit Master Plan Bond Referendum (Representative Tanzi H5470 / Senator Vargas) – Proposes a bond for $100M in capital improvements to voters in 2026 to implement the Transit Master Plan. Capital assets include infrastructure for high capacity transit lines, bus stop improvements and safety, updated technology, and more.
-
Motor Fuel Tax – 30% Allocation to RIPTA (Representative Stewart H5467 / Senator Zurier S0046) – Would increase the share of annual gas tax revenue allocated to RIPTA to 30% of the total share. When the gas tax was set at 32.5 cents per gallon, RIPTA was allocated 9.75 cents per gallon, a 30% share. As the gas tax has increased to 38 cents per gallon due to inflation, RIPTA’s share has remained 9.75 cents per gallon, or about a 26% share.
-
Motor Fuel Tax – Two-year Inflation Rate (Representative Tanzi H5468 / Senator Zurier S0047) – Would change how the gas tax is impacted by inflation. Currently, the tax is only evaluated and increased against inflation every two years using the previous year’s inflation rate. The bill would adjust that so the increase would consider the inflation rate over the full two years, increasing the total amount of gas tax collected, and thus the amount RIPTA receives if the first bill passes.
-
Rideshare Surcharge (Senator Kallman S0092) – Would introduce a 75 cent surcharge on all Uber/Lyft rides. Fifty percent (50%) of the surcharge collections would be deposited in a restricted account to be used for street infrastructure improvements in the municipality where the fare originated, and fifty percent (50%) of the surcharge collections would be deposited in a restricted account to be used as funding for RIPTA.
Without closing the current budget deficit of $32.6 million for RIPTA, Rhode Islanders will face significant service cuts that will be detrimental to many Rhode Islanders who depend on public transportation.
Steve Ahlquist: The Save RIPTA coalition had a press conference, and I was wondering what your thoughts are on that.
Speaker Shekarchi: I don’t have extra money in the budget. I’m very worried about whether we’re going to get cut from Washington. Last year, when the revenue numbers came in May, I gave RIPTA the numbers and told RIPTA CEO Christopher Durand this was one-time money. He was very appreciative. Really, it’s a dollar and cents issue. RIPTA got shut out of the Governor’s budget. I’ve got hospitals looking for $90 million. I got RIPTA looking for money. I got Sojourner House looking for $30 million, and have advocates coming to me regarding lots of issues. There is no extra money. I don’t have a drawer I can open, and here’s a hundred million for you. It doesn’t exist. You’ve heard me say this, the State House is a beautiful building, but there is no printing press in the basement. Only bake
Steve Ahlquist: My counter to that is we did the thing with the car tax elimination, but that didn’t affect anybody who doesn’t have a car and depends on RIPTA. In my opinion, funding RIPTA is the new car tax elimination.
Speaker Shekarchi: I will tell you that the car tax reduction was in the law and we accelerated that. There was broad-based support in both chambers for the reduction of the car tax. Tax dollars are very precious and there are a lot of people competing for them. A lot of people will say “I support RIPTA” and then they will say, “I support the hospitals” they’ve got like 50 different priorities. It’s not 50 different dollars. There’s $1.
Steve Ahlquist: I just wanted to make the case for it because RIPTA is so vital to many people with no other way to get around.
Speaker Shekarchi: I understand that and that’s why I made the allocation [last year] not the Governor. It depends on what’s available. That’s what I have to say. There is no free money. There are proposals to tweak the share of the gas tax, and a ride share tax. New taxes I can understand, but what they want to do in some of the proposals is divert the tax. When you divert it, it’s just taking it out of this pot and putting it in that pot. Then I got a hole in this pot. A new tax on rideshares is sustainable. Taking money from the gas tax puts a hole in the gas tax that I have to fill.
We’ve got a bridge to build, and I need money for road construction. Let me tell you something, guys. This conversation will be moot if the federal budget passes and Medicare and Medicaid dollars are cut by $200 or $300 million. Then, all bets are off. We’re talking about dramatic cuts.
I love my General Assembly room, but many of my younger members have only been here in the good years. We had ARPA, CARES Act, and infrastructure money. We don’t have those anymore, so we have to learn to live within our budget. It’s one thing to do that; it’s another to try to fill a hundred million dollar shortfall.
There have been bad budgets. There have been very bad budgets. And the very difficult part of this is that we don’t know. I used to say that things changed daily or weekly with the Trump Administration. Now they’re changing hourly. It’s constantly changing.
“We made progress last year but we need to continue to protect RIPTA,” said Representative Karen Alzate (Democrat, District 60, Pawtucket, Central Falls). “A robust, accessible public transportation system is vital to so many Rhode Islanders who need and rely on it to live their lives. Our communities deserve better! They deserve, from the State, a complete investment in a public transit system, to ensure they can go to work, school, the store, medical appointments, and to enjoy all that Rhode Island has to offer for themselves and their families.”
“For so long, public transit in this State has not been properly funded or made a priority for our communities; that needs to end today. We need to invest in real transit options for all Rhode Islanders, not just because we have to but because we choose it as a real viable transit option for all,” said Senator Mark McKenney (Democrat, District 30, Warwick).
“RIPTA is a vital part of our democratic infrastructure in Rhode Island,” said Patrick Crowley, President of the Rhode Island AFL-CIO. “It connects our communities in ways every Rhode Islander supports. That’s why the Rhode Island AFL-CIO supports increased funding for RIPTA to not just preserve but expand services.”
Following a $15 million investment from the General Assembly last year, RIPTA resolved its driver shortage, increased service reliability, and grew the workforce. Now, those positive gains are at risk.
“Funding for RIPTA is essential to keeping our transit system moving forward,” said President/Business Agent Walter Melillo of the ATU Local 618/618A, “This will allow us to continue the service that many people depend on daily, and preserve hundreds of good-paying jobs for the hard working drivers and staff at RIPTA.”
If this year’s deficit is not filled, RIPTA may be forced to lay off about a third of its workforce.
A reliable public transportation system is a fundamental necessity for youth to get to school, and for seniors, individuals with disabilities, people with low incomes who can’t afford a car, new arrivals, and those who would rather take a ride than contribute to our chronic traffic, parking, and pollution issues. Rhode Island has the foundation of an excellent statewide bus system, but it has suffered from disinvestment and neglect for many years.
“Public transit in Rhode Island has suffered from lack of investment for decades,” said Senator Lammis Vargas (Democrat, District 28, Cranston, Providence), who is introducing a bond referendum to fund long-term capital investments for RIPTA. “A convenient and robust public transit system with modern infrastructure and connections between transit modes is pivotal to enabling our communities and our economy to flourish. We must invest in RIPTA to enable it to be the strong public transit system Rhode Islanders need and deserve.”
“Without the bus, my peers and I could not go to school,” said Lounay Oliver Camacho, a youth advocate with Young Voices and student at Mt. Pleasant High School. “We would miss out on job opportunities, afterschool programs, and even having fun with friends.”
“RIPTA is a vital service for thousands of Rhode Island residents,” said Ray Gagne, Rhode Island Organizing Project Director. ”Our elderly and disabled members depend upon RIPTA for their daily transportation needs. Inaction will be felt for generations if we allow public transportation to languish at this critical moment.”
